Lates News

External member Taylor of the Bank of England's Monetary Policy Committee has stated that Bank officials cannot avoid the issue of interest rate direction, directly challenging the approach taken by Governor Bailey. Taylor has been unusually frank about his expectations for the eventual path of the UK neutral interest rate, while Bailey and those around him have repeatedly sidestepped questions on the matter, citing too much uncertainty. Taylor warned on Friday that avoiding this issue is "difficult, problematic, and in my view, would backfire." He once again called for a rate cut, stating that the Bank of England should lower rates to address the "deteriorating" economic environment and warning that historical experience shows the sooner the better.